Google Inc. ($GOOG) isn’t afraid to dive head-first into product lines they have little experience in. The tech giant has already diversified from search into production with acquisitions of cell maker Motorola Mobility and rumors of an upcoming gaming device. On July 24, Google made two simultaneous hardware announcements and released both a new version of their tablet and a wireless computer-to-TV device, signaling they are taking the move into hardware very seriously indeed.
Nexus 7 Tablet Thinner, Faster... More Expensive
The tablet was the latest version of the Nexus 7, calling it “the world’s highest resolution 7 inch tablet.” The tablet seriously undercuts the Apple (AAPL) iPad, whose latest version, the iPad 4, retails for $499. With the Nexus, Google is throwing their support behind a growing trend that favors low-end, affordable tech over the more sophisticated gadgets that made Apple such a force in the tech market.
The tablet is thinner and faster than its previous incarnation, but is slightly more expnsive. The tablet will retail for $229, $30 more than the previous incarnation. Google has also released an update of Android to coincide with the release of the tablet.
Analyst Patrick Moorhead of Moor Insights and Strategy thinks this is just an initial price, and that Google will drop it to around $200 around Christmas season.
Google Unveils Wireless Device that Connects Internet and Television for $35
Google simultaneously unveiled Chromecast, a small device that allows users to easily stream video onto their TV. Chromecast capitalizes on an ongoing sea change in viewer habits, as more and more consumers watch content on their computers. The device wirelessly transmits computer video to a a television via an HDMI outlet.
The device is being promoted in a cross-promotional effort with streaming content provider Netflix Inc. (NFLX) as buyers get a free three-month trial of Netflix with the purchase of the device. Existing subscribers are allowed to take advantage of the offer. Netflix currently holds over 30 million subscribers.
The device is compatible with Apple iOS and Android, and will retail for $35.
Google's stock is down 1.12 percent to hit $892.50 a share. The stock is up 28.48 percent on the year.
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer